Edgewater Digital Technologies New York Chicago London - - PowerPoint PPT Presentation

Edgewater Digital Technologies

New York Chicago London Singapore Mexico City Santiago

EDGEWATER DIGITAL www.edgewaterdigital.io info@edgewaterdigital.io +1.312.766.3290

Introduction – June 2019

A Revolution in Digital Trading

The Investment Opportunity

COMPANY & OPPORTUNITY 02

EDGEWATER DIGITAL

Edgewater Markets is launching a new company, Edgewater Digital, to establish a best-in-class crypto trading platform to meet the requirements of institutional money managers and traders globally.

Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency, enhancing price discovery and reducing transaction costs, by leveraging Edgewater Market’s proprietary technology, currency trading expertise and existing tier-1 relationships. Edgewater Digital Security Token

• Equity ownership and profit sharing
• Listed on security token exchanges (planned)
• Automated compliance (smart contract)
• Interoperability across token assets (ERC20)
• Liquidity after required lock-up period

The Edgewater Markets Advantage

HISTORY 03

EDGEWATER DIGITAL INSTITUTIONAL PLATFORM

• Low Impact Trading
• Algorithmic Execution
• Efficient, Secure Settlement
• Risk Mgmt & Portfolio Analytics
• Compliance & Reporting

EXISTING RELATIONSHIPS

• 300+ institutional customers
• Over 50 countries
• Global Vendors and Partners

PROPRIETARY TECHNOLOGY

• TCA
• OMS
• Matching Engine
• SOR
• CLOB

PROFESSIONAL SUPPORT

• 24/7/365 OTC Desk
• Multi-Lingual Live Support
• GUI and API
• Mobile Access

EXPERTISE

• Successful Electronic Currency

Trading Business

• Institutional Market Focus
• Advanced Trading Technology
• Global Liquidity Management

GLOBAL NETWORK

• Data Centers: NY, LD, TK, MX
• Low-Latency Data

Communications

▪ Founded in 2009 ▪ 300+ institutional customers in over 50 countries ▪ Profitable track record ▪ Executing over $10 billion daily fiat trading volume ▪ Proprietary trading technology ▪ Global trading network with data centers in New York, London, Tokyo, Mexico City ▪ Experienced team of 65 professionals located in Europe, Asia, Latam and N America ▪ Edgewater Markets private equity partner FTV Capital

Edgewater Management Team

MANAGEMENT TEAM 04

EDGEWATER DIGITAL

The Edgewater team has decades of experience in institutional trading, technology and global financial services management.

Members of our team have held senior roles at some of the largest financial institutions in the world and many have been early adopters of blockchain technology. Since the company’s founding in 2009, the multi-lingual Edgewater team has built a global network of relationships with customers, partners and regulators that has enabled them to sustain rapid growth and a high level of success.

Skovran Schreder CEO Alessandro Scarsini President Jeff Johnson COO Jason Aubrey CTO Alessandra Bozzo CAO Michael Naylor Bus Dev Mike Johnson Development Nate Arenchild Risk Mgmt Michael Serpa Liquidity Mgmt Shilpa Dubey Asia-Pacific Emanuel Georgouras Europe Rob Sanchez Latam Matthew Roszak Richard Rofe

Strategic Advisors

Crypto Market Opportunity

CRYPTOCURRENCY MARKET 05

EDGEWATER DIGITAL

▪ Crypto’s extraordinary pace of innovation is forecast to allow crypto to surpass historical Fiat growth rates ▪ In December 2017, Crypto daily volume reached $50B1 highlighting crypto trading potential ▪ The Crypto market has been forecast to reach up to $2 Trillion ADV by 20272 ▪ Fiat grew at over 60% CAGR from 1977 – 1987 ▪ As a mature product, Fiat experienced 20%+ annual growth over the past 10+ years of tech innovation (“Electronification of FX” above) ▪ Growth of electronic trading created a multi-faceted array of firms with dozens of providers co-existing to provide institutional liquidity.

1CoinMarketCap.com (April 2018); businessinsider.com 2Apply FX CAGR from 1977-1987 (61%) to recent Crypto ADV $30B

Large Orders are Expensive and Difficult to Execute

CURRENT LANDSCAPE 06

Excessive Risk Lack of Depth Fragmentation Latency Security Gaps High Costs Inefficient Execution

EXCHANGE 5 BUY 18 BTC

“Buy 100 BTC, market”

Exchange 1 BUY 22 BTC Exchange 2 BUY 33 BTC Exchange 3 BUY 27 BTC Exchange 4 Missed it

4 orders, 4 confos

EDGEWATER DIGITAL

Current Situation

Leveraging Existing Institutional Trading Technology

EDGEWATER SOLUTION 07

CRYPTO PRIME TRADER™

1 order, 1 confo

“BUY 100 BTC, MARKET” Fast, easy, low impact

EDGEWATER DIGITAL

Our Solution

Best-in-Class Security Institutional Size Orders Global Aggregated Liquidity Reduced Costs Efficient, Secure Settlement Low Impact Execution 24/7 Live Global Support

Introducing Crypto Prime Trader™

PRODUCT ECOSYSTEM

EDGEWATER DIGITAL

08

POSITION MONITORING REAL TIME P&L AGGREGATED LIQUIDITY ADVANCED ANALYTICS AND CHARTING CONSOLIDATED ORDER BOOK INTELLIGENT TRADING ALGORITHMS EFFICIENT, SECURE SETTLEMENT SMART ORDER ROUTER WEB-BASED TRADING PLATFORM CRYPTO MISSION CONTROL™

Best-in-Class Platform for Institutional Trading & Compliance

• Exchange and OTC liquidity
• Real-time P/L and trading algorithms
• Advanced analytics & charting
• Efficient, Secure Settlement
• Mobile Access

Crypto Prime TraderTM

PRODUCT OVERVIEW

EDGEWATER DIGITAL

Product Ecosystem

• Digital Limit Order Book TM
• Digital Exchange Gateway TM
• Crypto Mission Control TM
• 24/7 Live Multi-Lingual Support

09

Launch Crypto Prime Trader, Build Brand/Product Awareness

• Conference sponsorship: crypto

focused and traditional institutional

• Media relations – digital and social

media: EWC news and promotional commentary

Promote Trading Volume, Build Trader Loyalty

• Issue ERC-20 compliant utility token to

incentivize platform use

• Provide discounts on fees linked to

trading volume

MARKET ENTRY

Go To Market Strategy

EDGEWATER DIGITAL

Introduce CPT to EWM Customers

• Leverage existing EWM sales
• Cross-sales and referrals
• Target institutional customers: trading

firms, hedge funds, retail and institutional brokers, fund managers, emerging market banks, developed market banks

Introduce CPT to Crypto HFs, OTC Desks and Exchanges

• Establish EWC sales force
• Over 300 crypto HFs – approximately

100 with over $10M AUM1

• 30-40+ OTC desks2
• 200+ crypto exchanges3

Establish OTC Trading Relationships

• Establish EWC OTC desk
• Provide 24/7 live professional

support

• Establish liquidity and custody

relationships

Expand Institutional Market

• Target currency traders, money

managers (fund/ETF managers, pensions, endowments) and FOs

• Over 20% of institutional trading

firms actively planning trading function4

• 22% of institutional investors have

exposure to digital assets, 40% say they are open to investments5

10

1CryptoFundResearch.com 4Thomson Reuters Client Survey (April 2018) 2Medium: Cointastical/CMEgroup.com/EWM 3CoinMarketCap.com 5Fidelity/Greenwich Associates Institutional Survey (May 2019)

Q1 2019

Business Formation Banking Relationships Liquidity and Custody Connectivity (ongoing) Crypto Prime Trader (CPT) Alpha Testing

Q2 2019

CPT Development: SOR, Smart Ticket, Algorithms, GUI design Settlement/Custody Crypto Mission Control Private Placement Offering

Edgewater Digital Roadmap

PRODUCT ROADMAP

EDGEWATER DIGITAL

11

Q3 2019

CPT Credit, Risk Mgmt and Post-Trade Reporting CPT Digital Order Book EWD Market and Credit Operations Product Launch

Q4 2019

CPT Utility Token Loyalty Program Mobile Development Risk Management & Portfolio Analytics STO Exchange Listing

Crypto Prime Trader Development Timeline

DEVELOPMENT TIMELINE

EDGEWATER DIGITAL

12

➣ A – Connect customers with existing accounts, VWAP, smart execution ➣ B – Launch Edgewater Digital principal accounts, provide leveraged trading ➣ C – Launch Crypto Prime Trader Digital Order Book

Liquidity Sources

Customer Accounts EWDT Principal Accounts EWDT Digital Order Book

Rate Engine

Crypto Prime Trader

Smart Ticket Smart Order Router Customers Pre-Trade Credit Check Post-Trade

• Confirmation
• Settlement
• Credit
• Custody
• Reporting

EWDT Operations

• Market Risk
• Credit Risk
• Technology
• Customer Svc

A B C

An Established Brand with Superior Positioning

INVESTMENT SUMMARY

EDGEWATER DIGITAL

Read More About our Company Success at: www.EdgewaterDigital.io

• Existing Institutional Customer Base
• Existing Profitable Business
• Proprietary trading technology
• Transaction fees based revenue model
• 10+ years experience in Institutional Trading
• Global trading network - New York, London,

Tokyo, Mexico City

Decades of Experience Positioned to be Market Leader in Digital Assets

13

Thank You

New York Edgewater Digital Technologies Inc. 10 East 53rd Street, 12th Floor New York, NY 10022 Phone: +1-212-370-5270 Chicago Edgewater Digital Technologies, 111 West Illinois Street, 5th Floor Chicago, IL 60654 Phone : +1-312-766-3290 Email : info@edgewaterdigital.io

EDGEWATER DIGITAL